The UK Government has confirmed a £450 Cost of Living Payment for August 2025, aiming to provide financial relief to households struggling with rising expenses. This one-off payment is targeted at those on low incomes and receiving certain benefits. Here’s a complete guide to who qualifies, when the payment will be made, and how to get it.
Purpose of the £450 Cost of Living Payment
The payment is designed to help eligible citizens:
- Offset high costs of energy, groceries, and essential bills.
- Reduce the impact of inflation on low-income families and pensioners.
- Ensure vulnerable households have extra support during economic pressures.
Eligibility Criteria
You may be eligible for the £450 payment if you are receiving one or more of the following means-tested benefits during the qualifying period set by the UK Government:
- Universal Credit
- Income Support
- Pension Credit
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Working Tax Credit
- Child Tax Credit
Important Notes:
- You only receive one payment per household, even if multiple members qualify.
- Payments are automatic – no application is needed.
Who Will Not Qualify?
You are unlikely to get the payment if:
- Your income is above the benefit threshold.
- You only receive New Style JSA or New Style ESA without other qualifying benefits.
- You live permanently outside the UK (with limited exceptions).
Payment Dates for August 2025
The Department for Work and Pensions (DWP) and HM Revenue & Customs (HMRC) will handle the payments depending on your benefits.
- Payment Period: August 12 – August 30, 2025
- Method: Direct bank transfer into the same account where you receive your benefits.
- Amount: £450 (tax-free and does not reduce other benefits).
How to Get the £450 Payment
You do not need to apply for this payment. If you are eligible:
- DWP or HMRC will automatically deposit the money.
- The payment will appear separately from your regular benefit amount.
- Ensure your bank details with DWP or HMRC are up to date to avoid delays.
Why This Payment Matters in 2025
With living costs still high, the £450 August payment is a vital support measure for millions of UK residents. It provides additional financial help before the winter months, when energy bills typically rise.
Overview Table
| Detail | Information |
|---|---|
| Payment Name | August 2025 Cost of Living Payment |
| Amount | £450 |
| Eligibility | Low-income households on specific benefits |
| Payment Dates | 12–30 August 2025 |
| Application Needed | No – automatic |
| Taxable? | No |
FAQs
1. Do I need to apply for the £450 Cost of Living Payment?
No, it’s paid automatically if you’re eligible.
2. Will it affect my benefits?
No, the payment is tax-free and won’t impact other benefits.
3. Can two members of the same household receive it?
No, only one payment per household is given.